Banks in line for another £40bn bill as fresh wave of mis-selling and forex rate rigging charges loom

By Alex Hawkes, Financial Mail on Sunday |

Britain’s biggest banks are facing a new compensation bill of up to £40billion as a fresh wave of charges over misselling and foreign exchange rate rigging looms.

The Financial Conduct Authority is set to rule within weeks on whether undisclosed commissions charged on Payment Protection Insurance break consumer protection rules. Some experts have put the cost of an adverse ruling at as much as £33billion for the banks.

Separately, pension funds and other investors engaged in currency trading are likely to file a claim in London in October for billions of pounds against the banks for rigging foreign exchange markets.

For their next trick: Banks have set aside cash to compensate customers missold paid-for accounts offering perks that could prove useless. Lloyds, pictured, has set aside £185million

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